WORLD EXPERIENCE OF INDIVIDUAL INCOME TAXATION IN THE CONTEXT OF REFORMING THE TAX SYSTEM OF UKRAINE

Abstract

The purpose of the article is to study possible directions of reforming the personal income tax system in Ukraine by adapting progressive world experience to national realities.

The scientific novelty is the analysis of historical aspects of tax development, and personal income tax, in particular. The experience of the world's leading countries in the administration, calculation and payment of personal income tax has been studied. In most European countries, the personal income tax refers to local taxes, and therefore its rates are set by local governments. The directions of improvement of the system of personal income tax by introducing progressive tax rates and establishing a minimum non-taxable income of citizens, which will help fill the state budget, ensure social equality and social protection of low-income citizens. Differentiation of personal income tax rates should depend not only on the amount of income, but also on the marital status of taxpayers: the number of employees in the family, the presence and number of children and retirees. At the same time, the conditions for doing business must be improved. It is appropriate to pay considerable attention to tax discipline and tax responsibility, which in turn will strengthen and ensure the growth of tax culture of society.

Conclusions. So, summing up, we can conclude that it is not necessary to completely copy the foreign experience of paying and administering personal income tax, and transfer it to the modern realities of the national economy. Only the selection of the best world methods with their close combination of national tax traditions will allow to form an effective, socially oriented and fair mechanism for calculating and paying personal income tax.

It is important to change the philosophy of taxes on compulsory payments, which is currently formed in society, to help the state, which in turn will take care of its citizens, ensuring their security needs and social needs in education, medicine and other areas life of the population. Total fiscal control over the payment of taxes together with the high quality of services provided by the state to the population in exchange for taxes will avoid illegal schemes of tax evasion and change the attitude of citizens to their constitutional duty to pay taxes.